How to Draw Metals Trading Fib Extension on Downward Metals Trading Trend
Drawing Metals Trading Fib Extension Levels Metals Technical Indicator on a Downward Metals Trend
We draw the Metals Fibonacci Extension tool from chart point 1 to chart point 2 to chart point 3 as shown on the metal examples illustrated & described below. Remember we always plot this Metals Fibonacci Extension tool in the direction of the metal trend. In the Metals Fibonacci Extension example illustrated and explained below, can you figure what is the direction that we have drawn it? That's right - downwards direction.
As a trader you would also have used Metals Fibonacci Extension level 100.0%, just where the metals price reached as illustrated on the Metals Fibonacci Extension example illustrated and explained below. That would have been a good take profit area.
How to Draw Metals Trading Fib Extension on Downward Metals Trading Trend
From the Metals Fibo Extension tool examples above, after drawing this Metals Fibonacci Extension indicator tool there are two levels that are used to show the profit taking levels, these two Metals Fibonacci Extension levels are plotted represented as horizontal lines across the metals chart marked as 61.8% Metal Fibo Extension Level & 100% Metals Fib Extension Level.
Explanation of How to Draw Metal Fibonacci Extension Levels on Metal Charts
We use Metals Fibo Extension Zones to estimate where the metals trend movement will reach. There are 2 oftenly used Metals Fibo Extension areas: 61.8% Metals Fibonacci Extension Level and 100% Metals Fibonacci Extension Levels, these are used for setting taking profit levels.
To draw Metals Fibonacci Extension levels on metals chart we wait until the metals price retracement is complete & the metals price starts to move in the original direction of the Metals trend. Where the metals price retracement reaches is used as chart point 3. Metals Fibonacci Extension Indicator tool is drawn using three chart points as shown on the metal examples illustrated & described below of how to draw the Metals Fibonacci Extension Technical Indicator.
The Metals Fibonacci Extension example illustrated and explained below shows the 3 Chart Points where the Metals Fibonacci Extension indicator is drawn, marked as Chart point 1, Chart point 2 & Chart point 3.
Chart point 1 is where the metals trend started, Chart point 2 is where the metals trend pulled back & retraced & Chart point 3 is where the metals retracement reached as shown on the Metals Fibonacci Extension Technical Indicator Tool examples illustrated & described below.
How to Draw Metals Fibonacci Extension Metals Technical Indicator on Downwards Metals Trading Trend
Please note where these Metals Fib Extension levels are plotted - Metals Fib Extension levels are plotted above the Fibonacci indicator, these are the chart points where a trader will place the take-profit orders using these Metals Fibo Extension Levels - 61.8% Metals Fibonacci Extension Level and 100.0% Metals Fib Extension Level.
